Thursday, October 02, 2008

Credit Default Swaps

2 Comments:

Not a bad article, as long as you understand that the bad events it discusses have not, in fact, happened and may never happen.

There's also an interesting point about disclosure. The reason that executive compensation disclosure reveals nothing useful is that investors are not actually interested in executive compensation. The regulators keep pushing disclosure because they lack the power to do what they would really like to do, which is impose substantive limits on executive compensation. It remains to be seen whether investors are actually interested in CDS exposure.